The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1887-07-14
ISSUED BY
The American Water Works Co.

The undersigned offer for sale and recommend
for investment, ut iO3 mud interest, subject
TO advance without notice, the above des-
cribed 81 GOO, 900 bonds Of the American WateL
Works Company, secured By mortgAge~upo the
franchise and pr operty Of the Water Works at
OMAHA Nebraska
= These bonds are part Of an authorized loan Of
$4,000 900, of which 100000 placed In trust
with The Farmers Loan aud Trust Company New
York, for the purpose Of retiring an equal amount
of old bonds now outstanding as soon as they can
be redeemed, and the remaining $4,000, 900 are
deposited in trust with the sameCompanyt to be Is
sued after January LIST, 1888, as may be requir
ed to defray the actual cash cost OF extensions Of
water mains and other additions to the plant
For the present, however, the entire Indebtedness
Of the Company will be only 100000, upon
which the annual interest charge will amount to
$4,000.
The gross income OF the Company for the en-
suing year on the basis Of present applications
and contracts will exceed 100000, and II the
average rate Of increase for the past three years
Is continued the basis Of earnings on July LIST
1888, will not be less than S250,ooO per annum
but there is every indication that the percentage
Of increase this year Will be larger than ever be-
fore, the Company having added 6o4 new con
sumers during the six months ending July LIST,
1887, as compared with $50 for the year 1886.
The operating expenses for the ensuing year
viii approximate s45, 00O and after paying inter
est and all other charges there will be a surplus
Of more than S35 900, exclusive Of any increase
in earnings beyond existing contracts.
BY express provision of the mortgage no part Of
the 81, 000, 900 bonds in trust can be issued un-
less the net income is more than sufficient TO pay
the interest thereon in addition TO bonds previ
ously issued, and then only to pay actual cost Of
extension, not exceeding 100000 in any one
month.
The present population Of Omaha Is not less
than 100000, an increase Of 10000 since 1880
when the works were constructed, and this re-
markable growth has not only required the Com
pany TO make large extensions every year. but
will neeessltate the removal Of tie pumping sta
ton to place some five miles distant from the
present location, where a sufficient area for more
settling basins can be obtained.
Next to those at Kansas City the Water Works
at Omaha are the most extensive under private
management in the United States. The import.
ance OF Omaha as a commercial centre is shown
by the heavy bank exchanges at the Clearing
House, the same being in excess Of those Of Cleve
land, indianapolis, Columbus or Denver, and
nearly equal to Detroit and Minneapolis, and
larger than those of any New England city, ex
cept Boston and Providence, and greater than the
misunderstanding of the banks at Portland. Me.
Worcester and Springfield, Massachusetts.
| The bonds are now being engraved to meet the
requirements of the New York Stock Exchange
and as soon as practicable, application will be
made 10 admit them to dealings at that exchange
and when placed upon the list they viii not onlY
have a ready market but viii doubtless steadily
1 vdvanee in value
Pending the delivery Of engraved bonds on o
before September LIST, 1887, certificates In dc
nomination of $4,000 each win be issued by The
Farmers Loan and Trust Company Of New York
which will have the same force and security a
the bonds, and for smaller amounts the under
signed win give temporary receipts.
We commend these bonds as aeonseryatiye in
yestment for trust funds. Copies of the mortgage
and other papers may be seen at our respective
/ Offices.